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Spain – draft decree ties data centre growth to new renewables

Spain's government has opened public consultation on a draft decree requiring new data centres to source at least 80 percent of their hourly electricity consumption from renewables, as it moves to stop rising computing demand from driving up gas use and consumer costs.

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The draft applies to new data centres with grid access capacity of 1 MW or more connecting after the rules take effect; existing facilities are unaffected. Under its "additionality" requirement, every new megawatt of consumption must be backed by a megawatt of renewable capacity installed within the previous 18 months, whether through self-consumption or long-term power purchase agreements, with compliance verified hour by hour. The decree stems from Real Decreto-ley 7/2026, part of Spain's response to the Middle East crisis, and is being fast-tracked through a consultation running from 27 August to 4 September.

Government defends its plan

Digital Transformation Minister Óscar López ruled out any moratorium on new data centres. "We want the best data centres: ones that are sustainable, efficient and sovereign," he told an AMETIC digital economy event in Santander, arguing that without matching renewable build-out, rising demand would otherwise be met with more gas-fired generation, pushing up electricity costs for all consumers.

Data centre association SpainDC has pushed back: "The new requirements put a risk of investment loss of up to 90 percent of planned funding," the group said, calling for "substantial changes" to the text. Its latest annual report put cumulative investment in Spanish data centres at €66.9 billion between 2026 and 2030 under existing rules, a figure it says the new requirements could sharply cut. SpainDC has also asked for more time to respond, arguing the consultation window is too short for a rule reshaping billions in investment.

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Increasingly, data centre and AI infrastructure investment is colliding with limited grid capacity and slow permitting for new renewables. Spain's own solar sector has separately warned that strict hourly matching could add to an oversupply problem already visible in the market, after the country logged more than 500 hours of zero or negative power prices so far this year. (TF)